MANAGEMENT

HISTORY
 LEARNING OUTCOMES
• Describe some early management examples.
• Explain the various theories in the classical approach.
ANCIENT MANAGEMENT
Who ensured that there
Who told would be enough stones
each worker at the site to keep
what to do ? workers busy?

More than
100,000
workers
some 20
years
 ANCIENT MANAGEMENT
A Major Economic and Trade Center in the 1400s • Develop an early form of
business enterprise and
engaged in many activities
common to todays’s
organizations

• Used warehouse and inventory

systems to keep track of
material, human resource,
management functions to
manage the labor force, and an
accounting systems to keep
track of revenues and costs.
 Adam Smith
In 1776

The economic advantages that

organizations and society would
gain from the division of labor
(or job specialization) – that is,
breaking down jobs into
narrow and repetitive tasks.
INDUSTRIAL REVOLUTION
• More economical to
manufacture goods in factories
rather than at home.
• Needed someone to forecast
demand.

These managers
would need format
theories to guide
them in running
these large
organizations
 CLASSICAL APPROACH
Emphasized rationality and Classical
making organizations and
workers as efficient as Approach
possible

General
Scientific
Administrative
Management
Theory
Frederick W. Taylor and the
husband-wife team of Frank Henri Fayol
and Lilian Gilbreth and
Max Weber
Scientific management
The theory of scientific
management :
Using scientific methods to
define the “one best way” for a
job to be done :
• Putting the right person on the
job with the correct tools and
equipment
• Having a standardized method
of doing the job
• Providing an economic
incentive to the worker
 SCIENTIFIC MANAGEMENT
 Focused on increasing worker
productivity through the reduction of
wasted motion
 Developed the microchronometer to
time worker motions and optimize
work performance

 Use time and motion

studies to increase
productivity
 Hire the best qualified
employees
How Do Today’s Managers Use Scientific Management ?  Design incentive systems
based on output
 GENERAL ADMINISTRATIVE THEORY
What constitued
What managers
good management
do ?
practice ?

Describe the practice of management as something distinct from accounting, finance,

production, and other typical business functions
 Fayol’s 14 principles of management
• Division of Work • Remuneration

• Authority • Centralization
• Scalar Chain
• Discipline
• Order
• Unity of Command • Equity
• Unity of Direction • Stability of tenure of personnel
• Subordination of individual • Intiative
interests to the general interest. • Esprit de corps
THANK YOU